The signing of a letter of intent usually precludes the target firm from suing the potential acquiring company if the acquirer eventually withdraws its initial offer.

Question

Quizplus · Accepted Answer

A letter of intent is generally non-binding regarding the acquisition itself, meaning it does not legally prevent the target firm from suing the potential acquiring company if the deal falls through, depending on the specific terms and conditions outlined in the letter and applicable laws.

The Signing of a Letter of Intent Usually Precludes the Target